Auditor: Nebraska has 30 days to repay $22 million

LINCOLN, Neb. (AP) — State Auditor Mike Foley says Nebraska has been given 30 days to repay nearly $22 million to the federal government because of the state's troubled effort to privatize child welfare services.

Foley said Wednesday that Nebraska could face annual interest fees of more than 10 percent if the state fails to repay the money immediately.

The announcement came after the state auditor's office received two federal letters related to the Department of Health and Human Service's child welfare reform efforts. Some of the concerns related to how the use of federal aid was documented.

The repayment demand was for nearly $7.9 million in fiscal year 2012 and $14.1 million in fiscal 2011. Foley says the fiscal 2013 audit is ongoing, and could lead to other questionable expenditures.

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